Consumer Behavior in the Digital Music Market using Behavioral Game Theory

Authors

Max Mindlin, The College of WoosterFollow

Abstract

The introduction of the internet, and thereby digital goods, has drastically changed consumer behavior in the music market. Behavior of particular note is the tendency of consumers to pay more than required for an album without any material motivation to do so, which we call the generous payment phenomenon. We observe that traditional neoclassical economic theory has difficulty predicting behavior such as this, therefore further models must be developed. We attempt to create a new model for consumer behavior specific to the digital music market using game theory. Specifically, the public goods game is used as a baseline and we apply a Theory of Reciprocity developed by Falk and Fischbacher.

Advisor

Kelvey, Robert

Department

Mathematics

Recommended Citation

Mindlin, Max, "Consumer Behavior in the Digital Music Market using Behavioral Game Theory" (2017). Senior Independent Study Theses. Paper 7660.
https://openworks.wooster.edu/independentstudy/7660

Disciplines

Algebra | Behavioral Economics | Discrete Mathematics and Combinatorics

Keywords

music, digital, behavior, consumer, economics, game, theory

Publication Date

2017

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis